Overall, new solutions keep appearing as regulatory compliance requirements ask for foundational layers that enable better security token creation, and management of liquidity, among other factors. The Polymath Network is now setting its tone on the ground. It raises discussions on how the blockchain industry should keep deploying new resources to offer a safer environment for regulated assets.
What makes the Polymath Network unique is the concept of offering digital securities, or digital tokens. Ranging from publicly traded equities, bonds, and debt, to real estate, intellectual property, and other tangible and intangible assets, each one of these can be tokenized through the solution offered by the network.
Security Tokens Address Critical Issues of Traditional Assets
Security tokens are looking to revive the blockchain industry’s decentralized nature that expert players have sometimes questioned, as these assets remove go-betweens or intermediaries. Moreover, fractional asset ownership can be provided through security tokens because they can tokenize illiquid assets.
Of course, as often happens with everything brand new in this sector, interest has awakened among fintech firms such as B89, a Peruvian financial services platform, which recently joined the network of node operators on Polymesh – the institutional-grade blockchain built by Polymath Network and which is expected to be launched soon.
Such announcements make us ask some questions: What would be the role of traditional broker-dealers in the future as security tokens consolidate in the sphere? This question could get an answer soon, as we’ve been witnessing how traditional financial companies reinvented their business fronts to adapt to the ongoing changes in the industry’s dynamics.
Interesting Technical Details
On a technical aspect, Polymath Network could be setting a standard for the security tokens sector, as it has relied on ERC1400. In the words of the project: “ERC1400 combines new and existing standards with the goal of creating a unified framework for all security tokens.”
Furthermore, it seeks to offer partial fungibility, which could be a gamechanger in how we look at the tokenized assets, as Polymath Network aims to improve transparency in terms of ownership rights – an issue that it’s a must to address when dealing with security tokens.
Finally, it would be interesting how Polymesh, once it arrives, could improve aspects like portfolio-based custody and security identifiers, as well as settlement speeds. Are you excited to see how security tokens could make their inception into the crypto sphere in a widespread way?